Question 1

Aggregation of segments is allowed only of reportable operating segments and only if a majority of the aggregation criteria are satisfied.

Accepted Answer

A) True 
 B)False

Question 2

_____ An entity that operates in several industries has (a) external sales of $50,000,000, (b) intrasegment sales of $5,000,000, and (c) intersegment sales of $4,000,000. In performing the 10% of revenues test to determine reportable segments, the 10% is applied to

Accepted Answer

A)  $4,000,000 
B)  $50,000,000 
C)  $54,000,000 
D)  $55,000,000 
E)  $59,000,000 
A)  $4,000,000 
B)  $50,000,000 
C)  $54,000,000 
D)  $55,000,000 
E)  $59,000,000

Question 3

_____ Which of the following items does FAS 131 require to be excluded from the measure of profitability to be disclosed for reportable segments?

Accepted Answer

A)  Unusual items. 
B)  Extraordinary items. 
C)  Income tax expense (or benefit). 
D)  Interest expense. 
E)  None of the above. 
A)  Unusual items. 
B)  Extraordinary items. 
C)  Income tax expense (or benefit). 
D)  Interest expense. 
E)  None of the above.

Question 4

A reconciliation must be presented that reconciles the total revenues of the reportable segments to consolidated pretax income.

Accepted Answer

A) True 
 B)False

Question 5

_____ Aggregation of two or more reportable operating segments (not two or more operating segments) having (1) similar economic characteristics and (2) a majority-not all-of other FAS 131 specified similarities is

Accepted Answer

A)  Mandatory. 
B)  Prohibited. 
C)  Optional. 
D)  None of the above. 
A)  Mandatory. 
B)  Prohibited. 
C)  Optional. 
D)  None of the above.

Question 6

Segment assets for all reportable segments must be reconciled to ______________ ___________________________ assets.

Accepted Answer

The answer of Segment assets for all reportable segments must...

Question 7

_____ Which of the following disclosed segment items need not be reconciled to the corresponding consolidated amount even though the item is included in the measure of profitability used by the CODM to manage the segment?

Accepted Answer

A)  Interest expense. 
B)  Extraordinary items. 
C)  Depreciation expense. 
D)  Goodwill amortization expense. 
E)  None of the above. 
A)  Interest expense. 
B)  Extraordinary items. 
C)  Depreciation expense. 
D)  Goodwill amortization expense. 
E)  None of the above.

Question 8

_____ Aggregation of operating segments is allowed

Accepted Answer

A)  Only of nonreportable segments. 
B)  Only of reportable segments. 
C)  Only of components of a vertically integrated business. 
D)  Of both reportable and nonreportable segments 
E)  None of the above. 
A)  Only of nonreportable segments. 
B)  Only of reportable segments. 
C)  Only of components of a vertically integrated business. 
D)  Of both reportable and nonreportable segments 
E)  None of the above.

Question 9

All operating segments are reportable segments but not all reportable segments are operating segments.

Accepted Answer

A) True 
 B)False

Question 10

_____ Palco has two reportable operating segments. For 2006, the following segment information is provided:
  Assume that at the end of 2005 (the prior year-end), Segment A had $5,000 of unrealized intersegment profit and Segment B had $2,000 of unrealized intrasegment profit. The disclosed segment profitability amounts for 2006 would be reconciled to a corresponding consolidated profit of

Accepted Answer

A)  $545,000 
B)  $552,000 
C)  $560,000 
D)  $562,000 
E)  $600,000 
A)  $545,000 
B)  $552,000 
C)  $560,000 
D)  $562,000 
E)  $600,000

Question 11

Selected data (in millions) for Potax's identified operating segments follow:
   Required:
Perform the profitability quantitative thresholds test.

Accepted Answer

The answer of Selected data (in millions) for Potax's identified...

Question 12

Aggregation of segments can occur before or after performing the three quantitative thresholds tests.

Accepted Answer

A) True 
 B)False

Question 13

Selected data (in millions) for Plodex's identified operating segments follow:
   Required:
a. Perform the revenues quantitative threshold test. (None of the segments provides financial services.)
b. Determine if the 75% test's quantitative threshold is satisfied-assume that the other two tests did not result in any additional reportable segments.

Accepted Answer

The answer of Selected data (in millions) for Plodex's identified...

Question 14

FAS 131 does not require that common costs that benefit two or more segments be allocated to the individual segments.

Accepted Answer

A) True 
 B)False

Question 15

_____ FAS 131 defines an operating segment as a component of an enterprise that has:

Accepted Answer

A)  Assets that are 10% or more of consolidated assets. 
B)  Assets that are 10% or more of the combined assets of all segments. 
C)  Revenues that are 10% or more of consolidated revenues. 
D)  Revenues that are 10% or more of combined revenues of all segments. 
E)  None of the above. 
A)  Assets that are 10% or more of consolidated assets. 
B)  Assets that are 10% or more of the combined assets of all segments. 
C)  Revenues that are 10% or more of consolidated revenues. 
D)  Revenues that are 10% or more of combined revenues of all segments. 
E)  None of the above.

Question 16

Entity-wide disclosures pertain to (a) _____________________________________, (b) ______________________________, and (c) _________________________________.

Accepted Answer

The answer of Entity-wide disclosures pertain to (a) _____________________________________, (b)...

Question 17

_____ Which of the following mandatory or voluntarily disclosed segment items need not be reconciled to the corresponding consolidated amount?

Accepted Answer

A)  Segment cash flows from operations. 
B)  Segment interest income. 
C)  Segment fixed assets. 
D)  Extraordinary items. 
E)  None of the above. 
A)  Segment cash flows from operations. 
B)  Segment interest income. 
C)  Segment fixed assets. 
D)  Extraordinary items. 
E)  None of the above.

Question 18

_____ Paxco has two reportable operating segments. For 2006, the following segment information is provided:
   What is each segment's reportable profit for 2006 assuming that the measure of profit used by the CODMs to manage the segments is (1) not adjusted for unrealized intersegment profit and (2) adjusted for unrealized intrasegment profit?

Accepted Answer

Segment A: $6000,000-no adjus

Question 19

More than one segment may operate in the same geographic area and one segment may include operations in several geographic areas.

Accepted Answer

A) True 
 B)False

Question 20

Aggregation of segments is allowed of reportable operating segments only if a majority of the aggregation criteria are satisfied.

Accepted Answer

A) True 
 B)False

Exam 12: Reporting Segment and Related Information

Aggregation of segments is allowed only of reportable operating segments and only if a majority of the aggregation criteria are satisfied.

_____ An entity that operates in several industries has (a) external sales of $50,000,000, (b) intrasegment sales of $5,000,000, and (c) intersegment sales of $4,000,000. In performing the 10% of revenues test to determine reportable segments, the 10% is applied to

_____ Which of the following items does FAS 131 require to be excluded from the measure of profitability to be disclosed for reportable segments?

A reconciliation must be presented that reconciles the total revenues of the reportable segments to consolidated pretax income.

_____ Aggregation of two or more reportable operating segments (not two or more operating segments) having (1) similar economic characteristics and (2) a majority-not all-of other FAS 131 specified similarities is

Segment assets for all reportable segments must be reconciled to ______________ ___________________________ assets.

_____ Which of the following disclosed segment items need not be reconciled to the corresponding consolidated amount even though the item is included in the measure of profitability used by the CODM to manage the segment?

_____ Aggregation of operating segments is allowed

All operating segments are reportable segments but not all reportable segments are operating segments.

Selected data (in millions) for Potax's identified operating segments follow: Required: Perform the profitability quantitative thresholds test.

Aggregation of segments can occur before or after performing the three quantitative thresholds tests.

FAS 131 does not require that common costs that benefit two or more segments be allocated to the individual segments.

_____ FAS 131 defines an operating segment as a component of an enterprise that has:

Entity-wide disclosures pertain to (a) _____________________________________, (b) ______________________________, and (c) _________________________________.

_____ Which of the following mandatory or voluntarily disclosed segment items need not be reconciled to the corresponding consolidated amount?

More than one segment may operate in the same geographic area and one segment may include operations in several geographic areas.

Aggregation of segments is allowed of reportable operating segments only if a majority of the aggregation criteria are satisfied.

Wholly Owned Subsidiaries: at Date of Creation

Wholly Owned Subsidiaries: Postcreation Periods

Partially Owned Created Subsidiaries & Variable Interest Entities

Introduction to Business Combinations

The Purchase Method: at Date of Acquisition-100 Ownership

The Purchase Method: Postacquisition Periods and Partial Ownerships

New Basis of Accounting

Introduction to Intercompany Transactions

Intercompany Inventory Transfers

Intercompany Fixed Asset Transfers & Bond Holdings

Changes in a Parents Ownership Interest, Statement of Cash Flows, & Earnings Per Share

International Accounting Standards & Translating Foreign Currency Transactions

Using Derivatives to Manage Foreign Currency Exposures

Translating Foreign Currency Statements: The Current Rate Method

Translating Foreign Currency Statements: The Temporal Method and the Functional Currency Concept

Interim Period Reporting

Securities and Exchange Commission Reporting

Bankruptcy Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Changes in Ownership

Partnerships: Liquidations

Estates and Trusts

Governmental Accounting: Basic Principles and the General Fund

Governmental Accounting: The Special-Purpose Funds and Special General Ledger

Not-For-Profit Organizations: Introduction and Private Npos

Filters

Segment assets for all reportable segments must be reconciled to _____________ assets.

Entity-wide disclosures pertain to (a) ___, (b) , and (c) _.